PF Withdrawl TDS

Hi,

I have a query on PF, could you please clarify the same ?

I have been contributing to EPF for 4 years and 8 months through an employer. Now that I switched my job to another employer who does not deduct any PF. I thought of transferring my PF from previous employer to current employer so that my PF account wuld have been more than 5 years, but came to know that my new employer does not deduct PF only after joining.

- if the new employer is registered under PF then they add your name in master roll and pay register, and resume your previous code to their new code without effecting any loss. 

 

I have been going through various posts which says that PF account with non-continuous contribution of 5 years will incur TDS during withdrawl.

- PF office does not deduct any tax usually, but the amount is taxable in year of withdrawl in hands of assessee. 

I had discussed the same with my employer and they have agreed to start the PF Registration process. I have my PF Contribution till Dec 2010 thru my previous employer. How long will the PF REgistration take and will I be eligible to contribute for the month of jan 2011 if the PF Registration process is initiated in first week of Jan 2011.

- effective date will be from the date of application, and once your old account is taken in account with PF office, then gap period is ignored, in several cases when employee is on leave without pay and no pf deduction is made, that does not amount to discontinuation, in your case after taking your old account merged with new employer, the date of 1st contribution with your old employee will remain valid for further contributions. 

Is there any means, where I can make contribtion for jan month in the month of feb so that my contribution can be continuous...

- arrears would be get assessed by inspector of PF and will initiate demands for payment of arrears from the PF code effective date. 

 

Is there any grace period if I do not have continuous contribution due to a reason like this ?

 

Could you please let me know on this?

 

Thanks in advance for helping on this.

--Balaji